beFTM
Beefy Escrowed Fantom

What is beFTM?

beFTM is short for Beefy Escrowed Fantom. beFTM gives stakers access to maximized Validator Node rewards that typically aren’t available to the individual investor without locking FTM for 1 year. The token is loosely pegged to and 1:1 backed by FTM and can be staked on the Beefy platform and in farms on major DEXes.

How does one get beFTM?

To get your hands on beFTM, users must first deposit their FTM in the Beefy Delegator Vault. beFTM is then minted 1:1 with the FTM deposited or the FTM is used to buy beFTM from a liquidity pool depending on which is most profitable for the user.
beMINT determines the most profitable strategy
beFTM can also be purchased on many DEXes such as Solidly, BeethovenX, SpiritSwap, and SpookySwap. One might need the beFTM contract address for trading: 0x7381eD41F6dE418DdE5e84B55590422a57917886

How does beFTM delegation work?

The collective pool of FTM is delegated to Beefy’s Validator Node and perpetually locked as long as possible (51 weeks) to earn maximum validator rewards. We supply 1/15 of the deposit to our validator so we never hit the delegation limit. By staking our users’ FTM together, the Cowmoonity enjoys a much higher rate of return.

beFTM Earnings Pool and beFTM Vault

After depositing FTM to get beFTM, the FTM gets delegated to Beefy's Validator Node which earns more WFTM at around 14.5% APY. The WFTM rewards will be collected and distributed daily to the beFTM Earnings Pool where users can stake beFTM to earn WFTM. The beFTM Vault deposits the beFTM in the Earnings Pool and uses the share of the vault to buyback beFTM with the WFTM rewards. By doing so, the beFTM vault adds a continuous buying pressure to the beFTM token price.

What can I do with beFTM?

  • Deposit beFTM in the beFTM Vault for compounded interest in the form of more beFTM;
  • Deposit beFTM in the WFTM Earnings Pool for simple interest with WFTM rewards;
  • Stake in beFTM-FTM liquidity pools on all the major DEXes on Fantom.

How does beFTM keep its peg?

There are several mechanisms in place to help beFTM maintain peg against FTM. First of all, Beefy's Smart Minter will not issue new beFTM tokens when the price of beFTM is below the price of FTM, it will instead buy beFTM from a liquidity pool helping to restore the peg and giving the user a more profitable option. Secondly, the beFTM vault adds a continuous buying pressure to the beFTM token price. Lastly, arbitrageurs will either buy and sell beFTM depending on the peg.
In a hypothetical situation where the peg crashes to 0 with no signs of recovery, Beefy's Validator Node can be paused, forfeiting all pending rewards, and after waiting 1 full week everyone will be able to redeem their beFTM for the delegated FTM.
Last modified 2mo ago